WASHINGTON July 2, 2012 –

Chris Anderson, Editor, Healthcare Payor News writes:

Last week’s Supreme Court decision on the Affordable Care Act provided a setback to the Obama Administration by ruling that while the federal government can expand the Medicaid program, it cannot withhold funds from states that choose not to participate in the expansion.
"Nothing in our opinion precludes Congress from offering funds under the ACA to expand the availability of healthcare, and requiring that states accepting such funds comply with the conditions on their use,” wrote Justice John Roberts in the decision. “What Congress is not free to do is to penalize States that choose not to participate in that new program by taking away their existing Medicaid funding.”

The effect of this ruling is twofold. First, it jeopardizes the chances of the working poor – those with incomes higher than 100 percent of the federal poverty level (FPL) but less than 133 of FPL – of getting health insurance coverage. Second, it firmly empowers the states to decide how they want to handle both their own Medicaid programs and the issue of widespread lack of insurance among this population. To see the entire article, click here.